Cypress Communications, Inc. (NASDAQ: CYCO) announced that a Nasdaq Listing Qualifications Panel has decided to continue listing the company's securities on the Nasdaq National Market.
In July, Cypress Communications received a Nasdaq Staff Determination stating that the company was no longer in compliance with Nasdaq's minimum closing bid price requirement and that its securities were subject to delisting. The company requested a hearing before a Nasdaq Listing Qualifications Panel to appeal the determination, which stayed the proposed delisting until the Panel rendered its decision. On August 17, the company's shareholders authorized the Board of Directors to declare a reverse stock split in order to regain compliance with the minimum closing bid price requirement. The Board then executed a one for ten reverse split effective August 27, 2001, and the company successfully regained compliance with the minimum bid price requirement.
On September 13, 2001, the Nasdaq Panel rendered its decision that the company had regained compliance with the minimum bid price requirement for continued listing on the Nasdaq National Market. However, because the company is not currently in compliance with Nasdaq's minimum market value of public float requirement, the Nasdaq Panel informed the company that its continued listing will be subject to the following exception: On or before October 5, the company must demonstrate a market value of public float of at least $5 million for one trading day. If the company fails to do so, it will be provided with a 90 day grace period, during which time it must demonstrate a public float of at least $5 million for a minimum of ten consecutive trading days. Should the company fail to satisfy this exception, the Panel may determine to delist the company's securities from the Nasdaq National Market or to transfer the company's securities to the Nasdaq SmallCap Market.
Based on company calculations the market value of the company's public float was approximately $4.5 million as of the close of business on Wednesday, September 19, 2001.
About Cypress Communications:
Cypress Communications provides broadband solutions to businesses located in commercial office buildings in major metropolitan markets throughout the United States. For more information, visit www.cypresscomm.com.